Wann ist ein Unternehmen profitabel?

Abstract This paper analyses how the profitability of public companies in the Federal Republic of Germany has been measured since the 1950s and under which conditions corporations were considered successful. For this purpose, textbooks and arguments of leading business economists, speeches and publications of managing directors and companies’ annual reports are surveyed, in order to identify trends and policy changes. The paper demonstrates that the introduction of shareholder value approaches, based on financial market data, in the 1990s led to a fundamental change in management practices, connected to innovative financial accounting techniques. Since then, companies’ profitability has been assessed in relation to benchmarks derived from financial market data. Financial markets thus became increasingly relevant for decisionmaking processes in the real economy.

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Board gender diversity, corporate governance, and earnings management

Gender in Management An International Journal ◽

10.1108/gm-03-2018-0027 ◽

2019 ◽

Vol 35 (1) ◽

pp. 37-60 ◽

Cited By ~ 5

Author(s):

Nurlan Orazalin

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Management Practices ◽

Gender Diversity ◽

Policy Implications ◽

Annual Reports ◽

Public Companies ◽

Content Type ◽

Weak Evidence ◽

Board Gender Diversity

Purpose The purpose of this study is to examine whether board gender diversity and other board characteristics affect earnings management practices of top public companies in Kazakhstan. Design/methodology/approach The study analyzes data of top public companies for the period 2010-2016. Data on corporate governance were manually collected from annual reports and investment memorandums, and financial data were collected from audited financial statements. Findings The empirical results show that companies with greater board gender diversity are more effective in constraining earnings management. The findings also indicate that companies with larger boards adopt a more restrained approach to earnings management practices, thus supporting the theoretical framework of the study. However, the results provide weak evidence of the association between board independence and earnings quality. Originality/value This study is the first to investigate the relationship between gender diversity and earnings management in emerging markets such as Kazakhstan that offers managerial and policy implications.

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FUTURES-BASED MEASURES OF MONETARY POLICY AND JUMP RISK

Macroeconomic Dynamics ◽

10.1017/s1365100515000553 ◽

2016 ◽

Vol 21 (2) ◽

pp. 384-405 ◽

Cited By ~ 2

Author(s):

Inekwe John Nkwoma

Keyword(s):

Monetary Policy ◽

Financial Market ◽

High Frequency ◽

Detection Methods ◽

Policy Changes ◽

Jump Risk ◽

Jump Detection ◽

Market Data ◽

Sector Analysis

We estimate the effects of anticipated and unanticipated monetary policy changes on jump variation by employing high-frequency nonparametric jump detection methods. We find that anticipated changes in the Fed funds have no significant effect on jumps. In contrast, jump variation in the price of financial market data increases with monetary policy surprises. We document evidence of asymmetries in the response of jumps to monetary policy changes. Monetary policy surprises and positive changes in the Fed target rate induce increments in jumps. Similar results exist in the sector analysis. In addition, this study uncovers no evidence of endogenous response between jumps and monetary policy surprises.

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Deciphering the Liquidity and Credit Crunch 2007–2008

The Journal of Economic Perspectives ◽

10.1257/jep.23.1.77 ◽

2009 ◽

Vol 23 (1) ◽

pp. 77-100 ◽

Cited By ~ 1738

Author(s):

Markus K Brunnermeier

Keyword(s):

Financial Crisis ◽

Stock Market ◽

Financial Markets ◽

Great Depression ◽

Financial Market ◽

Mortgage Market ◽

Credit Crunch ◽

Real Economy ◽

The Real ◽

The Great Depression

The financial market turmoil in 2007 and 2008 has led to the most severe financial crisis since the Great Depression and threatens to have large repercussions on the real economy. The bursting of the housing bubble forced banks to write down several hundred billion dollars in bad loans caused by mortgage delinquencies. At the same time, the stock market capitalization of the major banks declined by more than twice as much. While the overall mortgage losses are large on an absolute scale, they are still relatively modest compared to the $8 trillion of U.S. stock market wealth lost between October 2007, when the stock market reached an all-time high, and October 2008. This paper attempts to explain the economic mechanisms that caused losses in the mortgage market to amplify into such large dislocations and turmoil in the financial markets, and describes common economic threads that explain the plethora of market declines, liquidity dry-ups, defaults, and bailouts that occurred after the crisis broke in summer 2007.

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The Institutional Financial Market’s Infrastructure: Theoretical and Practical Aspects

Modern Economics ◽

10.31521/modecon.v25(2021)-20 ◽

2021 ◽

Vol 25 (1) ◽

pp. 130-135

Author(s):

Natalia Sirenko ◽

◽

Olena Bodnar ◽

Nataliia Shyshpanova ◽

◽

...

Keyword(s):

Financial Markets ◽

Financial Market ◽

Financial Institutions ◽

Mixed Model ◽

Financial System ◽

Real Economy ◽

Stage Of Development ◽

Theoretical Approaches ◽

Definition Of ◽

Current Stage

Annotation. Introduction. The relevance of the study is conditioned to the significant influence of modern financial markets on the real economy and social development as a whole. Purpose. The purpose of the article is to generalize the theoretical provisions for determining the model of the financial market, highlighting the elements of the financial market infrastructure, analysis of the development of the domestic financial market. Results. We have done the characteristic of the current stage of the financial system’s and financial market’s development. Denotes the inhomogeneity of the existing theoretical approaches to the definition of a financial market and its structural classification, with emphasis on the importance of the institutional component. We have done the analysis of the different models (types) of the financial system and financial markets and the factors determining the use of these models in different countries. Background of selection of so-called mixed model of the financial system in Ukraine are systematized, when equal opportunities and rights, with no serious legislative restrictions and financial transactions are carried out banking and non-banking financial institutions. The current stage of development of the domestic financial market is characterized by a dominant share of universal banks, but the industry non-bank financial institutions has also received its development, which generally creates a competitive environment for all market participants. At the same time, certain non-bank credit institutions, recently appeared on the market and very dynamic, require special attention from the mega-regulator. Conclusions. In this regard, we have done the conclusion about the need to improve legislation in the field of financial markets and to ensure an acceptable level of control. Keywords: financial market; financial system; banking and non-banking financial institutions.

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DIVERSIFIKASI USAHA DAN MANAJEMEN LABA DENGAN PENDEKATAN CONDITIONAL REVENUE MODEL

Jurnal Akuntansi ◽

10.24912/ja.v21i2.200 ◽

2017 ◽

Vol 21 (2) ◽

pp. 302

Author(s):

Matthew Haryanto ◽

Lina Lina

Keyword(s):

Earnings Management ◽

Large Scale ◽

Stock Exchange ◽

Positive Influence ◽

Financial Accounting ◽

Annual Reports ◽

Accounting Standard ◽

Financial Reports ◽

Public Companies ◽

Revenue Model

Generally, go public companies are belong to large-scale companies or even international ones. Mostly those companies have more than one business divisions, therefore the financial reports might be published in more than one segments. According to Financial Accounting Standard 5, the company financial reports can be distinguished between geographical segments and operating segments. This study aims to give the empirical evidence about the influence of the business diversification towards earnings management. The amount of the geography segments and the operating segments are used as proxy to represent the business diversification. The earnings management is measured by conditional revenue model. The data is collected from the company annual reports by accessing through Indonesia Stock Exchange website for period 2011-2013. The sampling method used is purposive sampling. Data analysis used multiple linear regressions. The result of the study shows that the geography segments have no influence on the earnings management, meanwhile the operating segments have positive influence on earnings management.

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Financial market development strategy in crisis: Analysis and recommendations

Economic Analysis Theory and Practice ◽

10.24891/ea.20.11.2021 ◽

2021 ◽

Vol 20 (11) ◽

pp. 2021-2052

Author(s):

Kirill L. ASTAPOV

Keyword(s):

Development Strategy ◽

Financial Market ◽

Foreign Exchange Market ◽

Real Economy ◽

Public Companies ◽

Market Strategy ◽

Investment Projects ◽

State Institutions ◽

Systemic Risks ◽

Economic Paradigm

Subject. The article considers the development strategy of the Russian financial market under new economic conditions. Objectives. The purpose is to elaborate theoretical and practical proposals to improve the financial market strategy for boosting investment and economic growth in crisis. Methods. The study rests on strategizing, which allows to propose a number of initiatives to enhance the strategy of the financial market during the crisis period, based on trends, existing competitive advantages and opportunities of the Russian economy. Results. The paper shows the need to continue the transformation of the financial system, based not only on the liberal economic paradigm and recommendations of international institutions on the free movement of capital, but also on the use of its own strategy, aimed at economic development (including in industrial regions), enabling to address environmental factors. Conclusions. In times of crisis, it is necessary to stir up State institutions for development in financial markets, synchronize monetary and fiscal policies, strengthen the regulation of cross-border capital flows, and use the ESG strategies by public companies in Russia. The establishment of some additional restrictions on capital markets and the foreign exchange market by the financial regulator, the support for the ESG approach by State institutions for development and banks will mitigate systemic risks during crisis periods and attract financial resources to long-term investment projects of the real economy, encourage the growth of capitalization of companies, including in regions.

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Strengthening Trust in Israeli Financial Market: The Case of the Demutualisation of the Tel Aviv Stock Exchange

Global Jurist ◽

10.1515/gj-2018-0032 ◽

2018 ◽

Vol 19 (1) ◽

Author(s):

Leon Yehuda Anidjar

Keyword(s):

Financial Markets ◽

Financial Market ◽

Stock Exchange ◽

Public Companies ◽

Tel Aviv ◽

Corporate Governance Mechanisms ◽

American Law ◽

Tel Aviv Stock Exchange ◽

Anglo American ◽

Legislative Changes

Abstract The Israeli stock market is in turmoil. In recent years, the Israel Securities Authority has initiated significant legislative changes intended to tighten the regulation applying to public companies in Israel. These legislative changes drew their inspiration from Anglo-American law. However, it became apparent that these changes significantly impeded the operations of public companies in Israel, leading to the deletion of such companies from trading and their registration in countries with more lenient regulation. The fall in the scope of trading on the Tel Aviv Stock Exchange led to mutual recriminations between the chairperson of the Israel Securities Authority and the chairperson of the Tel Aviv Stock Exchange concerning the reasons for the current situation. The steep decline in the scope of trading on the Tel Aviv Stock Exchange exposed a crisis of trust in Israeli financial markets. I shall argue that to encourage trust in Israeli financial market, we should adopt a general reform regarding the implementation of internal corporate governance mechanisms in the working process of the Israel Securities Authority and Tel Aviv Stock Exchange. In this framework, I will discuss the implication of several insights derived from the Organizational Management theory on special processes which could enhance cooperation between financial authorities and self-regulatory organizations in Israel. I believe that adopting those processes in Israel may contribute significantly to improving trust in the local financial markets.

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